Glossary of Municipal Securities Terms

RULE 10b-5

A rule promulgated under theĀ Securities Exchange Act of 1934 that makes it unlawful for any person, in connection with the purchase or sale of any security, (a) to employ any device, scheme, or artifice to defraud; (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. See: DUE DILIGENCE; FULL DISCLOSURE; INSIDER TRADING; MATERIAL OMISSION.

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